A Regenerative Economic System

Published: 06.Feb.2025

Preamble

The transition to a circular economy will be the most significant revolution in how the world does business. It will redefine our approach to materials and resources, reshape design and engineering, and fundamentally transform the relationship between businesses and their customers. It also presents one of the greatest economic opportunities of our time—unlocking new revenue streams, reducing dependence on scarce raw materials, and driving long-term resilience. At the same time, this transition moves us beyond merely minimizing the negative impacts of industry. Instead, it empowers us to build a world that is more abundant, enjoyable, and prosperous.

The Linear System

Today's economy is what is called "Linear". We take resources from the earth, produce products, and then consume and throw them away. This get-make-waste model has worked tremendously well for the past 250 years, but it comes with significant challenges.

The earth's resources are finite. Non-renewable resources—like oil, gas, and rare minerals and metals—will run out. By some estimates, we are consuming resources 1.7 times faster than the planet can regenerate them. The issue is compounded by how the world's population is growing and becoming richer, resulting in even more rapid consumption of our natural resources.

I want to be clear—the fact that developing economies are becoming richer is a great thing. It means more people are enjoying the conveniences of middle-class. This should be celebrated.

But as the world becomes more populated and prosperous it means more competition for the same exhaustible resources. Prices will continue to rise, cutting into the bottom line, and squeezing consumers.

Closed Loop Systems

The alternative is a system, or systems, that do not end in waste. In fact, the concept of "waste" is entirely eliminated as the output of one process becomes the input of another. In this model, products are intentionally designed to have their materials, components, or whole, re-enter the economy for reuse, hence decoupling economic growth from resource consumption.

Take for instance a plastic water bottle. In the linear model, the bottle is produced with known nanoplastics, put on a shelf, consumed once, then thrown away. At best, the bottle is recycled, in which case it's actually downcycled into a lower quality plastic. At worst, it ends up in a landfill or the ocean.

The producer is losing value because they have to generate and transport a new plastic bottle for each sale. The consumer is shafted because they're paying a premium to compensate for the cost to handle each bottle. And both the consumer and fish are at harm because they have plastics in their belly.

On the other hand, imagine how a transaction might work in a closed-loop system: Instead of plastic, water is bottled in aluminum or glass. Rather than sitting on a shelf, bottles are sold through vending machines that exchange—and possibly refill—previously used bottles. When users are finished, they return the bottle to the machine or bin, where it’s collected and stored until it’s ready for large-scale pickup.

No micorplastics, and no fish were harmed. The producer can charge a premium for these new bottles to offset the increased shipping costs (since glass weighs more than plastic). At the same time, users receive credits for returning and refilling bottles, further incentivizing reuse.

Admittedly, a plastic bottle is an easy example—it resonates with people. It’s also a simple one. Things become more nuanced as we apply these principles to even more complex industries, but the fundamentals remain the same.

And it may all seem overwhelming—because at times it is. Is it really possible to transform the economy itself?

Yes. Not only is it possible to be "less bad" by recycling, but we have the capability to unleash the full power of our industries to create a world that is more abundant, enjoyable, and prosperous. But before explaining how this is possible, it's import to first make the case for why anyone, especially organizations that are deeply entrenched in the Linear Model, would move to these new systems.

Make it Make Cents

The Zero-Waste model is projected to generate $4.5 Trillion in revenue by 2030. Market leaders have been taking notice and in 2022 alone, circular economy transactions accounted for roughly $339 billion.

There is an enormous amount of economic opportunity sitting there, ready to be unlocked. An opportunity that embodies the very essence of capitalism—a principle that is defined by private ownership of the means of production, distribution, and exchange for profit. That is, in part, what makes circularity so compelling; That it's built upon the resources that companies already own and have the means to reproduce and reuse their products. Through intelligent design and reuse, businesses will be able to recapture the billions of dollars of value that are currently being lost to "waste". And as resources become more scarce and supply chains become more volatile, companies will build an advantage by hedging on materials already circulating within their own ecosystem.

The benefits are not just financial. It's a misconception that the circular economy's primary focus is efficient resource use. The true power is on the demand side—how a company engages with its customers. A major advantage is the ability to build deeper, ongoing relationships with customers in ways that were previously impossible. Brands will adopt a Product-as-a-service (PaaS) model, where products are complimented by functionalities such as repair or replacement. Ownership of materials can return back to the producer, and users can subscribe to products. The notion of a one-time sale is fading. Companies that will thrive will be selling experiences, creating ecosystems that keep customers engaged and continuously coming back.

Regeneration

As circularity gains momentum, an organization will be responsible for shifting its focus from simply doing "less harm"—minimizing energy use, reducing waste, and lowering pollution—to becoming a net positive force for both the environment and the economy. Inspired by the principles of Cradle-to-Cradle (C2C), we can envision a future where industry and nature thrive together.

Look to office buildings that generate more energy than they consume, while producing food and vegetation for their occupants. Consider textile manufacturing that filters the water instead of polluting it—while using less energy.

These innovations don’t just reduce the negative impacts of industry—they actively increase the positive ones.

This is, by nature, an abundantly optimistic way of thinking. But we can start by asking : "How might my product or service be designed to leave a positive footprint?" Then, we work together—collaboratively, across industries and sectors—to make it happen.

Regeneration is the explicit end game. The first Industrial Revolution unlocked immense economic opportunity but was built on the assumption that the planet’s resources were infinite. An Industrial Revolution 2.0 won’t just create an abundance of economic wealth—it will foster an abundance of vegetation, water, and clean air.

How We Get There

Is this a product launch? A manifesto?

None of the principles of circularity are new. It’s understandable, then, that it can feel discouraging to still be in the innovation and early adoption stages. But that also means there’s a massive opportunity.

The lag is not for lack of effort—many organizations and forward-thinking companies are making real progress. There are already businesses proving what’s possible. But we’re not quite there yet. And that’s because a few critical pieces are still missing. The inflection point is now. The technology exists. The economics have never been more compelling. A truly circular economy will create more wealth, more jobs, and a more resilient economy and future. This is how we start to get there:

1. Reimagine Products for a Regenerative System. Collaborate with brands, designers, engineers, and manufacturers to create products intentionally designed for reuse, repair, and recycling. Shift towards business models that prioritize the value of materials and services over single-use products. Remove harmful and non-recyclable materials from the supply chain entirely, while building a repository of safe, high-quality materials that can be continuously repurposed.
2. Create the Infrastructure for PaaS. With products and materials prepared to reenter the system and circular businesses emerging, we need a platform capable of managing the seamless flow of goods and services. This system will support reverse logistics, streamline reuse, repair, and exchange, enhance user engagement and personalization, and drive intelligent resource optimization. To enable a thriving circular economy, this infrastructure must function as both a digital platform and a physical network, ensuring efficiency at every stage. This vision is brought to life through the rapid deployment of renewable energy, continuing AI and machine learning advancements, and the integration of IoT devices.
3. Build a Partner Supply System. A truly circular economy requires collaboration—no single entity can drive the transformation alone. By joining a network, companies gain access to a marketplace of vetted, reusable materials, reducing costs and reliance on virgin resources. This shared pool of materials unlocks more efficient production and encourages local manufacturing, helping drive both sustainability and profitability. Beyond materials, the network connects manufacturers, designers, architects, and engineers to collaborate across industries in ways that respect intellectual property, and encourage open innovation. As participation grows, the network effect strengthens—those who collaborate gain a strategic advantage, while others risk falling behind.

Look to the Future

This does not get us all the way there. And unfortunately for the title of this post, it certainly doesn't get us to a full regenerative system—it's but a continuation of the progress that's already been made. We're going to need a lot of great people coming up with a lot of innovative solutions to get to where we're pointing. We also need time. As the authors of C2C put it, it's going to take a lot of time, perhaps forever, but that's the point.

This feels like the most important work I could be doing right now. The economic case is clear, but beyond that, the potential for real, lasting good is undeniable. For decades, we've poured immense resources—time, money, energy, and knowledge—into things like advertising, social media, and fleeting distractions. Now, it’s time to direct that same effort toward engineering a world where businesses don’t just extract value but create it—where products, industries, and economies regenerate rather than deplete. We can leave the planet in a better place than how we inherited it—a world that is more abundant, enjoyable, and prosperous.